How the economy can recover by the End of 2020
According to Chief Economic Advisor Krishnamurthy Subramanian, the Indian economy will take almost the second half of this year to recover from the lockdown hit slowing down of the economy.
India is one of the fifth worst hit countries in the world with the COVID-19 disease. Mr. Subramanian has also indicated that it might take literally the next fiscal for the growth rate to come back on track.
‚ÄúThis year growth being very low and possibly a decline in output is something that is a part of our working assumptions. Recovery possibly in the second half of this year or next year, is also part of our baseline expectations,‚ÄĚ Subramanian said in a virtual press briefing to the media.
In another interesting breakthrough for India, BJP MP Subramanian Swamy has floated a bold idea to the Centre‚Äôs Narendra Modi government where he proposes an easy way to achieve its much-talked-about target of $5 trillion economy. Swamy said that the government could simply achieve its target by declaring Rs 35 the new valuation of one American dollar. Swamy‚Äôs thought comes in response to a recent revelation by the Reserve Bank of India that the latter was reluctant to give the Indian currency a free run despite the country‚Äôs foreign-exchange reserves reaching a record $500 billion mark.
The Bharitya Janta Party (BJP) had earlier raised the issue of devaluation of Indian currency against the dollar in its campaign during the 2014 Lok Sabha elections. Swamy then had commented on the issue of the devaluation of the Indian rupee during the UPA regime, ‚ÄúAll these politicians are dumping containers of cash in the Hawala market. And therefore, this supply of rupees has increased and, therefore, this decline has taken place.‚ÄĚ
Currently, some strategic thinking might just help India recover more quickly. This seems to be one of them.
India is looking at opening its doors to all those who would like to shift their shop from China and start manufacturing units here. It has also gone ahead and relaxed labour laws in order to support migrants from finding jobs in their own states. Besides this, India is moving towards self reliant production and green energy in order to recover from a possible backslide in its economy due to the Corona virus induced 60 day lockdown, which is now starting to ease in some parts of the country.